Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or
“the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s
largest publicly-traded precious metals mining company, announced
today results for the fourth quarter (4Q14) and full year 2014. All
figures have been prepared in accordance with IFRS (International
Financial Reporting Standards) on a non GAAP basis and are stated
in U.S. dollars (US$).
Fourth Quarter 2014 Highlights:
- In 4Q14, EBITDA from direct operations
was US$39.3 million and adjusted EBITDA (including associated
companies) was US$166.9 million.
- Strong gold production at Yanacocha in
4Q14 (322,309k oz) permitted to achieve the high end of the annual
guidance.
- Total attributable production in 4Q14
was 245k gold ounces and 5.5 million silver ounces (compared to
184k gold ounces and 4.8 million silver ounces in 4Q13).
- Full year 2014 attributable production
was 846k gold ounces and 19.7 million silver ounces (compared to
895k gold ounces and 18.9 million silver ounces in 2013).
- At the Tambomayo project, an
Environmental Impact Assessment (EIA) was approved in January 2015.
Construction is expected to begin in 2Q15.
- Gold reserves from direct operations
increased 13% due to Tambomayo project.
- At the San Gabriel (Chucapaca) project,
the critical surface property acquisition was finalized and the
Company is working to obtain permits for advanced explorations with
underground development.
- Cerro Verde’s plant expansion to 360K
TPD is in-line with schedules and budget. Additional production
from the expanded plant is expected by early 2016.
Financial Highlights (in millions of US$, except EPS
figures):
4Q14 4Q13 Var%
FY14 FY13 Var% Total
Revenues 265.6 294.2
-10%
1,165.2 1,259.6
-7% Operating Profit
-18.3 33.0
NA 61.6 215.2
-71% EBITDA Direct Operations 37.5
84.0
-55% 274.1 366.2
-25% Adjusted EBITDA (Inc Associates) 165.0
180.3
-8% 627.9 885.9
-29% Net Income ** -187.7 -356.0
-47% -76.1 -107.3
-29%
EPS* -0.74 -1.40
-47%
-0.30 -0.42
-29%
(*) as of December, 2014, Buenaventura had 254,186,867
outstanding shares.
(**) Yanacocha’s impairment loss (related to Conga) attributable
to Buenaventura was US$236.2 million
Operating Revenues
During 4Q14, net sales were US$253.7 million, a 12% decrease
compared to the US$287.0 million reported in 4Q13. This was
explained by the lower gold, silver and copper prices despite
higher silver, zinc and copper volume sold.
Royalty income increased 67%, to US$11.9 million in 4Q14
compared to the US$7.2 million reported in 4Q13. This was due to
higher revenues at Yanacocha (67% higher QoQ).
Operating Highlights 4Q14 4Q13
Var% FY14 FY13
Var% Net Sales
(in millions of US$)
253.7 287.0
-12% 1,128.3
1,241.3
-9% Average Realized Gold Price
(US$/oz)* 1,192 1,281
-7%
1,264 1,416
-11% Average Realized Gold
Price (US$/oz) inc. Affiliates 1,194 1,272
-6% 1,258 1,408
-11% Average
Realized Silver Price (US$/oz)* 15.76 20.82
-24% 18.65 22.35
-17%
Average Realized Lead Price (US$/MT)* 1,994
2,106
-5% 2,107 2,105
0%
Average Realized
Zinc Price (US$/MT)*
2,240 1,885
19% 2,244
1,869
20% Average Realized Copper Price
(US$/MT)* 6,591 7,158
-8%
6,738 7,179
-6%
(*) Buenaventura’s Direct Operations
Volume Sold 4Q14 4Q13
Var% FY14 FY13
Var% Gold Oz Direct Operations 102,043
101,442
1% 439,092 458,499
-4% Gold Oz inc Associated Companies 260,810
196,342
33% 917,266 962,087
-5% Silver Oz 5,075,656
3,980,486
28% 19,088,923 16,329,314
17% Lead MT 5,470 5,908
-7% 18,820 26,584
-29% Zinc
MT 9,961 7,866
27% 21,231
38,084
-44% Copper MT 10,451
8,333
25% 40,263 25,406
58%
For the twelve-month period, net sales decreased 7%, from
US$1,215.4 million in 2013 to US$1,128.3 million in 2014. Royalties
decreased 17%, to US$36.9 million in FY14 vs. US$44.2 million in
FY13.
Production and Operating Costs
In 4Q14, Buenaventura’s gold equity production from direct
operations remained flat (104,166 oz) compared to 4Q13. Gold
production including associated companies increased 33% due to
higher production from Yanacocha. Silver equity production from
direct operations increased 14%, mainly due to higher production in
Uchucchacua and El Brocal.
Equity Production 4Q14 4Q13
Var% FY14 FY13
Var%
Gold Oz Direct
Operations1
104,166 103,868
0% 422,135
451,311
-6% Gold Oz including Associated
Companies 244,854 184,323
33%
845,515 895,345
-6% Silver Oz Direct
Operations1 5,350,072 4,698,705
14% 19,074,255 18,379,411
4%
Silver Oz including Associated Companies 5,491,990
4,803,361
14% 19,659,822
18,905,280
4% Lead MT 6,012
5,999
0% 20,227 25,579
-21% Zinc MT 8,509 7,904
8% 22,038 34,980
-37% Copper
MT Direct Operations1 5,886 5,112
15% 23,678 15,157
56% Copper
MT including Associated Companies 16,851 18,685
-10% 68,106 64,647
5%
1 Direct Operation production includes 100% of Buenaventura’s
operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10%
of Coimolache (Tantahuatay).
Orcopampa’s (100% owned by Buenaventura)
Production 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Gold Oz
54,878 48,117 14% 203,226 224,671
-10%
Silver Oz 143,925
88,181 63% 423,148 519,727 -19%
Cost Applicable to
Sales 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Gold US$/Oz
681 804 -15% 768 799 -4%
Gold production at Orcopampa increased 14% in 4Q14 (compared to
4Q13) due to higher ore treated (Appendix 2). Cost Applicable to
Sales (CAS) in 4Q14 decreased 15% explained by lower reagent
(cyanide) costs and improving efficiency due to better contractor
allocation.
Gold production guidance for 2015 is 190k – 205k ounces.
Uchucchacua (100% owned by Buenaventura)
Production 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Silver Oz
3,395,628 2,871,959 18% 12,055,570
11,444,751 18%
Zinc MT 1,504
2,154 -30% 6,349 8,146 -30%
Lead MT 2,086 1,821 15%
7,605 8,363 15%
Cost Applicable to Sales
4Q14 4Q13 Var
% FY 2014 FY 2013 Var
% Silver US$/Oz 14.87 15.68
-5% 16.22 16.48 -2%
Silver production in 4Q14 increased 18% compared to 4Q13, mainly
due to higher ore volume treated and recovery rate (see Appendix
2). Cost Applicable to Sales (CAS) in 4Q14 decreased 5% compared to
4Q13 mainly explained by lower reagent costs, better contractor
terms and infrastructure improvements inside the mine.
Silver production guidance for 2015 is 14.5 million - 15.0
million ounces.
Mallay (100% owned by Buenaventura)
Production 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Silver Oz
309,213 329,727 -6% 1,216,034 1,279,972
-5%
Zinc MT 2,333 2,402
-3% 9,893 8,973 10%
Lead
MT 1,876 1,848 2% 7,513
6,979 8%
Cost Applicable to Sales
4Q14 4Q13 Var % FY
2014 FY 2013 Var % Silver
US$/Oz 12.80 15.20 -16%
13.76 17.78 -23%
Silver production in 4Q14 was 6% lower than in 4Q13 due to lower
silver grade. Cost Applicable to Sales (CAS) in 4Q14 was 16% lower
compared to 4Q13 due to a strong increase in zinc by-product
contribution.
Silver production guidance for 2015 is 1.1 million – 1.25
million ounces.
Julcani (100% owned by Buenaventura)
Production 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Silver Oz
782,652 771,296 1% 3,084,347 2,711,996
14%
Cost
Applicable to Sales 4Q14
4Q13 Var % FY 2014
FY 2013 Var % Silver
US$/Oz 14.11 10.52 34% 14.14
12.70 11%
Silver production in 4Q14 was in-line with 4Q13 production. Cost
Applicable to Sales (CAS) in 4Q14 was 34% higher than 4Q13 mainly
explained by higher silver concentrate inventories (approximately
65% of the quarterly production, in transit to the smelter).
Silver production guidance for 2015 is 2.9 million – 3.1 million
ounces.
La Zanja’s (53.06% owned by Buenaventura)
Production 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Gold Oz
34,808 33,451 4% 143,573 137,395
4%
Silver Oz 82,594 108,175
-24% 422,395 391,832 8%
Cost Applicable
to Sales
4Q14 4Q13 Var %
FY 2014 FY 2013 Var %
Gold US$/Oz 845 668 26%
574 647 -11%
Gold production in 4Q14 increased 4% when compared to 4Q13. CAS
in 4Q14 increased 26% due to higher stripping ratio in Pampa Verde
open pit (1.06 in 4Q14 vs. 0.42 in 4Q13).
Gold production guidance for 2015 is 138k – 142k ounces.
Tantahuatay’s (40.10% owned by Buenaventura)
Production 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Gold Oz
38,558 33,417 15% 143,643 142,667
1%
Silver Oz 227,131
129,676 75% 754,357 684,022 10%
Cost Applicable to
Sales
4Q14 4Q13 Var %
FY 2014 FY 2013 Var %
Gold US$/Oz 475 382 24%
455 543 -16%
Gold production in 4Q14 increased 15% compared to the figure
reported in 4Q13. CAS in 4Q14 increased 24% due to higher
consumption of reagents (lime) and blasting supplies due to a
higher stripping ratio (0.042 in 4Q14 vs. 0.01 in 4Q13).
Gold production guidance for 2015 is 138k – 142k ounces
El Brocal (54.07% owned by Buenaventura)
Production 4Q14
4Q13 Var % FY 2014 FY
2013 Var % Copper MT
10,749 9,345 15% 43,282 27,469
58%
Zinc MT 8,640 4,321
100% 10,162 24,220 -58%
Silver
Oz 921,625 586,324 57% 2,501,839
1,955,485 28%
Cost Applicable to Sales
4Q14 4Q13 Var %
FY 2014 FY 2013 Var %
Copper US$/MT 5,449 4,820
13% 5,096 5,490 -7%
Zinc
US$/MT 1,321 1,262 5% 1,369
1,415 -3%
During 4Q14, zinc production increased 100% compared to 4Q13,
due to higher volume treated from Tajo Norte (polymetalic ore).
Copper production increased 15% in 4Q14 compared to 4Q13. Silver
production increased 57% compared to the figure for 4Q13. Copper
CAS increased 13% compared to 4Q13, due to higher commercial
deduction and zinc CAS increased 5%.
Zinc production guidance for 2015 is 75k – 85k MT. Copper
production guidance for 2015 is 30k – 35k MT.
General and Administrative Expenses
General and administrative expenses in 4Q14 were US$24.8
million, 30% higher when compared to the 4Q13 figure (US$19.2
million). Due to a US$20.2 million credit in long-term compensation
provisions in 2013, total G&A expenses in 2014 were 35% higher
(US$101.1 million in 2014 vs US$75.1 million in 2013).
Exploration in Non-Operating Areas
Exploration in non-operating areas during 4Q14 was US$17.8
million compared with a US$9.4 million for 4Q13. During the period,
Buenaventura’s main exploration efforts were focused on the
following projects: La Zanja Underground (US$5.9 million) and
Tambomayo (US$3.2 million). For the twelve-month 2014 period, the
expense was US$50.0 million (US$32.8 million in 2013).
Share in Associated Companies
During 4Q14, Buenaventura’s share in associated companies was
negative US$113.8 million, compared to the negative US$288.0
million reported in 4Q13, composed by:
Share in the Result of Associates 4Q14
4Q13 Var% FY14
FY13 Var% (in millions of US$)
Cerro Verde 20.8 34.6
-40% 77.9 116.2
-33% Coimolache
(Tantahuatay mine)
5.0 5.7
-11% 22.3 20.8
7% Yanacocha -139.7 -328.3
NA -174.7 -251.1
NA Total
-113.8 -288.0 NA
-74.6 -114.1 NA
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), during 4Q14, gold
production was 322,309 oz of gold, 75% higher than 4Q13 production
(184,318 oz). For the twelve-month 2014 period, gold production was
969,944 ounces, 5% lower than 1,017,259 ounces in 2013, but in the
high end of the guidance given at the beginning of the year (895k –
985k). 2015 Gold production guidance for Yanacocha is 880k – 940k
ounces.
Despite of the fact that Yanacocha reported US$80.6 million of
net income (under US GAAP), the impact of an impairment loss (in
accordance to IFRS) related to Conga resulted in a loss of US$380.3
million. In 4Q14, CAS was US$426/oz, a decrease of 50% when
compared to US$849/oz in 4Q13 due to lower stripping ratio in
accordance with the mining plan.
Capital expenditures at Yanacocha were US$31.6 million in 4Q14
and US$117.3 million in FY2014.
Yanacocha still has a strong pipeline of growth projects:
Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha
Verde (scoping) and Maqui Maqui (exploration).
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), during 4Q14
copper production was 56,001 MT (10,965 MT attributable to
Buenaventura), a 19% decrease compared to 4Q13 (69,318 MT and
13,572 MT attributable to Buenaventura). For full year 2014, copper
production was 226,906 MT (44,428 MT attributable to
Buenaventura).
During 4Q14, Cerro Verde reported net income of US$55.9 million,
72% lower compared to US$196.8 million in 4Q13. This was mainly due
to lower sales. For FY2014, net income was US$377,605 million
(compared to US$613,262 million in FY2013).
Capital expenditures at Cerro Verde were US$448.6 million in
4Q14 and US$1,750 billion in 2014.
Cerro Verde’s plant expansion has an excess of 50% progress and
completion expected by 4Q15. The total CAPEX for the project is
US$4.6 billion.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), attributable
contribution to the net income in 4Q14 was US$5.0 million (US$5.7
million in 4Q13). For 2014, the contribution was US$22.3 million,
compared to US$20.8 million reported in 2013.
Project Development and Exploration
The Tambomayo Project (100% ownership)
The Environmental Impact Study was approved in January 2015 and
the Company is in the process of acquiring construction permits.
Tambomayo has 251k gold ounces in reserves and 336k gold ounces in
resources. The estimated annual production is 110k-120k gold ounces
and 3.0 million silver ounces.
The San Gabriel Project (100% ownership)
The Company is currently in the process of obtaining permits for
the advanced exploration with underground development of the
Canahuire ore bodies and diamond drilling of other prospects.
Other
At the Board of Directors meeting held February 26, 2015, the
following resolutions were passed:
To call for the Annual Shareholders Meeting to be held on March
27, 2015, the following items will be proposed for approval:
a. Approve the Annual
Report as of December, 31, 2014. b. Approve the Financial
Statements as of December, 31, 2014 c. Appoint Ernst and Young
(Paredes, Zaldivar, Burga y Asociados) as External Auditors for
fiscal year 2015. d. Approve the Company’s financing operations,
including but not limited to the placement and issuance of
obligations and/or obtainment of loans, as well as the delegation
of power to the Board for the approval of all of the agreements
deemed necessary or convenient to determine or approve each and
every one of the terms, characteristics and conditions of the
Company’s financing activities.
* * *
Company Description
Compañía de Minas Buenaventura S.A.A. is Peru’s largest,
publicly traded, precious metals company and a major holder of
mining rights in Peru. The Company is engaged in the mining,
processing, development and exploration of gold and silver and
other metals via wholly owned mines as well as through its
participation in joint exploration projects.
Buenaventura currently operates several mines in Peru
(Orcopampa*, Uchucchacua*, Breapampa*, Mallay*, Julcani*,
Recuperada*, El Brocal, La Zanja and Coimolache and is developing
the Tambomayo and San Gabriel projects.
The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership
with Newmont Mining Corporation), an important precious metal
producer; 19.58% of Sociedad Minera Cerro Verde, an important
Peruvian copper producer.
For a printed version of the Company’s 2013 Form 20-F, please
contact the investor relations contacts on page 1 of this report,
or download the PDF format file from the Company’s web site at
www.buenaventura.com.
(*) Operations wholly owned by Buenaventura
Note on Forward-Looking Statements
This press release may contain forward-looking information (as
defined in the U.S. Private Securities Litigation Reform Act of
1995) that involve risks and uncertainties, including those
concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and
expenses, results of exploration, the continued improving
efficiency of operations, prevailing market prices of gold, silver,
copper and other metals mined, the success of joint ventures,
estimates of future explorations, development and production,
subsidiaries’ plans for capital expenditures, estimates of reserves
and Peruvian political, economic, social and legal developments.
These forward-looking statements reflect the Company’s view with
respect to the Company’s, Yanacocha’s and Cerro Verde’s future
financial performance. Actual results could differ materially from
those projected in the forward-looking statements as a result of a
variety of factors discussed elsewhere in this Press Release.
**Tables to follow**
APPENDIX 1
Equity Participation in Subsidiaries and Affiliates (as
of December 31, 2014)
BVN
Operating Equity %
Mines / Business El Molle Verde S.A.C* 100.00
Trapiche project Minera La Zanja S.A* 53.06 La Zanja
Sociedad Minera El Brocal S.A.A* 54.07 Colquijirca
and Marcapunta Compañía Minera Coimolache S.A ** 40.10
Tantahuatay Minera Yanacocha S.R.L ** 43.65
Yanacocha Sociedad Minera Cerro Verde S.A.A ** 19.58
Cerro Verde Processadora Industrial Rio Seco S.A* 100.00
Rio Seco chemical plant Consorcio Energético de Huancavelica
S.A* 100.00 Energy – Huanza Hydroelectrical plant
Buenaventura Ingenieros S.A* 100.00 Engineering
Consultant
(*)Consolidates
(**) Equity Accounting
APPENDIX 2
GOLD PRODUCTION Three Months Ended December 31
Full Year Orcopampa Orcopampa Old
Tailings Orcopampa Orcopampa Old Tailings
2014 2013 % 2014
2013 % 2014
2013 % 2014 2013
% Ore Milled DMT 115,862 99,093
17% 0 48,125
- 454,694 443,537
3% 0 425,639
- Ore Grade OZ/MT
0.48 0.48
1% 0 0.059
- 0.455 0.487
-6% 0 0.048
- Recovery Rate % 96.9% 97.2%
0% 0% 75.7%
-
97.1% 96.2%
1% 0% 76.1%
- Ounces Produced
54,878 45,981 19%
0 2,136 - 202,227
208,774 -3% 0
15,897 - Orcopampa Total
Production 4Q14 54,878
4Q13 48,117
FY2014
202,227
FY2013 224,671
La Zanja Tantahuatay 4Q14
4Q13 % FY2014
FY2013 % 4Q14 4Q13
% FY2014 FY2013
% Ounces Produced 34,959 33,451
5%
143,724 137,395 5%
38,558 33,417 15%
143,643 142,667 1%
Breapampa 4Q14 4Q13 %
FY2014 FY2013 % Ounces
Produced 13,178 21,918 -40%
74,807 81,882 -9%
SILVER PRODUCTION Three Months Ended
December 31 Full Year Uchucchacua
Colquijirca Uchucchacua Colquijirca
2014 2013 % 2014
2013 % 2014
2013 % 2014 2013
% Ore Milled DMT 287,970 238,390
21% 416,653
198,885
109% 1,013,633 1,001,102
1% 481,589 1,268,781
-62% Ore Grade OZ/MT 13.83 15.21
-9% 1.86 2.89
-36% 14.56 14.18
3% 1.92 1.41
36% Recovery
Rate % 85.2% 79.2%
8% 63.4% 67.0%
-5% 81.7% 80.6%
1% 65.3% 66.2%
-1% Ounces Produced
3,395,628 2,871,959 18%
490,896 385,221 27%
12,055,570 11,444,751 5%
603,342 1,186,022 -49%
ZINC PRODUCTION Three Months
Ended December 31 Full Year Uchucchacua
Colquijirca Uchucchacua Colquijirca
2014 2013 % 2014
2013 % 2014
2013 % 2014 2013
% Ore Milled DMT 287,970 238,390
21% 416,653
198,885
109% 1,013,633 1,001,102
1% 481,589 1,268,781
-62% Ore Grade % 0.90 1.32%
6719% 3.08% 0.03
-9% 1.04 1.23%
8327% 3.12% 2.97%
5% Recovery
Rate % 57.9% 68.4%
-15% 66.6% 64.0%
4% 60.2% 66.0%
-9% 66.06% 64.3%
3% MT Produced 1,504
2,154 -30% 8,640
4,321 100% 6,349
8,146 -22% 10,162
24,219 -58%
APPENDIX 3: EBITDA Reconciliation (in thousand US$)
4Q14 4Q13 FY 2014
FY 2013 Net Income -190,725 -349,011
-61,640 -79,736
Add / Substract:
228,215 433,014 335,692
445,943 Provision for income tax, net 23,928
13,410 66,012 86,482 Share in associated companies by
the equity method, net 113,842 287,985 74,600
114,145 Interest income -4,124 -4,270
-8,408 -6,621 Interest expense 4,255 665
11,318 9,896 Loss on currency exchange difference
3,378 341 8,452 7,192 Long Term
Compensation provision -1,842 259 89
-20,207 Depreciation and Amortization 57,684 41,445
208,698 159,140 Workers´ participation provision
-20 2,700 3,669 5,437 Adquiscion gain
generated by subsidiary 0 0 -59,852 0
Loss from discontinued operations 31,114 83,885
31,114 83,885 Impairment of Long-Lived Assets
0 6,594 0 6,594
EBITDA Buenaventura Direct
Operations 37,490 84,003
274,052 366,207 EBITDA Yanacocha
(43.65%) 86,970 18,986 161,185
263,025
EBITDA Cerro Verde (19.58%) 28,215
64,586 143,674 206,061
EBITDA Coimolache (40%)
12,335 12,713 48,941 50,610
Adjusted
EBITDA (including Associated companies) 165,010
180,287 627,852 885,902
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings
before net interest, taxes, depreciation and amortization, share in
associated companies, net, loss on currency exchange difference,
other, net, provision for workers’ profit sharing and provision for
long-term officers’ compensation.
EBITDA (including associated companies) consists of EBITDA
(Buenaventura Direct Operations), plus (1) Buenaventura’s equity
share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of
EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of
EBITDA (Coimolache). All EBITDA mentioned were similarly calculated
using financial information provided to Buenaventura by the
associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations)
and EBITDA (including affiliates) to provide further information
with respect to its operating performance and the operating
performance of its equity investees, the affiliates. EBITDA
(Buenaventura Direct Operations) and EBITDA (including affiliates)
are not a measure of financial performance under IFRS, and may not
be comparable to similarly titled measures of other companies. You
should not consider EBITDA (Buenaventura Direct Operations) and
EBITDA (including affiliates) as alternatives to operating income
or net income determined in accordance with IFRS, as an indicator
of Buenaventura’s, affiliates operating performance, or as an
alternative to cash flows from operating activities, determined in
accordance with IFRS, as an indicator of cash flows or as a measure
of liquidity.
APPENDIX 4: PROVEN AND PROBABLE RESERVES
GOLD
% Ownership
MT (000) Grade Oz / MT Oz (000)
Attributable
Orcopampa 100.00 631 0.509 321 321 Tambomayo 100.00 877
0.286 251 251 Breapampa 100.00 520 0.014 8 8 Breapampa (on Pads and
Plant) 100.00 11 11 Julcani 100.00 310 0.015 5 5 Mallay 100.00 122
0.035 4 4 El Brocal Marcapunta (Sulphides) 54.07 21,991 0.013 276
149 La Zanja 53.06 9,917 0.023 223 119 La Zanja (on Pads and Plant)
53.06 21 11 Yanacocha 43.65 4,900 2,139 Yanacocha (Conga) 43.65
536,015 0.023 12,582 5,492 Tantahuatay 40.10 57,330 0.015 840 337
Tantahuatay (on Pads and Plant) 40.10 10 4
Total 627,713
0.031 19,452 8,850
SILVER
% Ownership
MT (000) Grade Oz / MT Oz (000)
Attributable
Uchucchacua (Silver - Sulphides) 100.00 3,884 15.770 61,238
61,238 Uchucchacua (Zinc - Sulphides) 100.00 209 21.050 4,393 4,393
Uchucchacua (Silver - Oxides) 100.00 79 7.430 584 584 Tambomayo
100.00 877 10.720 9,403 9,403 Julcani 100.00 310 20.300 6,295 6,295
Mallay 100.00 122 13.477 1,642 1,642 Orcopampa 100.00 631 1.746
1,102 1,102 Breapampa 100.00 520 0.552 287 287 Breapampa (on Pads
and Plant) 100.00 90 90 El Brocal (Tajo Norte - La Llave) 54.07
43,622 0.900 39,260 21,228 El Brocal Marcapunta (Sulphides) 54.07
21,991 0.600 13,194 7,134 La Zanja 53.06 9,917 0.137 1,357 720 La
Zanja (on Pads and Plant) 53.06 855 454 Yanacocha 43.65 66,900
29,202 Yanacocha (Conga) 43.65 536,015 0.070 37,784 16,493
Tantahuatay 40.10 57,330 0.340 19,505 7,820 Tantahuatay (on Pads
and Plant) 40.10 49 20 Cerro Verde (Sulphides) 19.58 3,953,234
0.048 187,827 36,777 Cerro Verde (Oxides) 19.58 610,019 0.010 6,039
1,182
Total 5,238,760 0.087 457,804 206,063
ZINC
% Ownership
MT (000) % Zn MT (000)
Attributable
Uchucchacua (Silver - Sulphides) 100.00 3,884 1.49 58 58
Uchucchacua (Zinc - Sulphides) 100.00 79 6.35 5 5 Tambomayo 100.00
877 2.46 22 22 Mallay 100.00 122 7.68 9 9 El Brocal (Tajo Norte -
La Llave) 54.07 43,622 2.53 1,104 597
Total 48,584 2.46 1,197
690
LEAD
% Ownership
MT (000) % Pb MT (000)
Attributable
Uchucchacua (Silver - Sulphides) 100.00 3,884 1.09 42 42
Uchucchacua (Zinc - Sulphides) 100.00 79 5.05 4 4 Tambomayo 100.00
877 1.71 15 15 Mallay 100.00 122 6.95 8 8 Julcani 100.00 310 2.17 7
7 El Brocal (Tajo Norte - La Llave) 54.07 43,622 0.86 375 203
Total 48,894 0.92 452 279
COPPER
% Ownership
MT (000) % Cu MT (000)
Attributable
Julcani 100.00 310 0.52 2 2 El Brocal Marcapunta (Sulphides)
54.07 21,991 2.26 497 269 Yanacocha (Conga) 43.65 536,015 0.28
1,501 655 Cerro Verde (Sulphides) 19.58 3,953,234 0.37 14,627 2,864
Cerro Verde (Oxides) 19.58 610,019 0.48 2,928 573
Total
5,121,569 0.38 19,555 4,363
MOLYBDENUM
% Ownership
MT (000) % Mo MT (000)
Attributable
Cerro Verde (Sulphides) 19.58 3,953,234 0.014 553 108 Cerro
Verde (Oxides) 19.58 610,019 0.003 18 4
Total 4,563,253 0.013 572 112
Prices used
for Reserve calculation: Gold 1,250 US$/Oz -
Silver 20 US$/Oz -
Zinc 2,200 US$/MT -
Lead
2,100 US$/MT -
Copper 6,630 US$/MT
APPENDIX 5: COST APPLICABLE TO SALES RECONCILIATION
Reconciliation of Costs Applicable to Sales and Cost
Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding
depreciation and amortization, plus Selling expenses. Cost
applicable to sales per unit sold for each mine consists of cost
applicable to sales for a particular metal produced at a given mine
divided by the volume of such metal produced at such mine in the
specified period. We note that cost applicable to sales is not
directly comparable to the cash operating cost figures disclosed in
previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit
of mineral sold are not measures of financial performance under
IFRS, and may not be comparable to similarly titled measures of
other companies. We consider Cost applicable to sales and Cost
applicable to sales per unit of mineral sold to be key measures in
managing and evaluating our operating performance. These measures
are widely reported in the precious metals industry as a benchmark
for performance, but do not have standardized meanings. You should
not consider Cost applicable to sales or Cost applicable to sales
per unit of mineral sold as alternatives to cost of sales
determined in accordance with IFRS, as indicators of our operating
performance. Cost applicable to sales and Cost applicable to sales
per unit of mineral sold are calculated without adjusting for
by-product revenue amounts.
The tables below set forth (i) a reconciliation of consolidated
Cost of sales, excluding depreciation and amortization to
consolidated Cost applicable to sales, (ii) reconciliations of the
components of Cost applicable to sales (by mine and mineral) to the
corresponding consolidated line items set forth on our consolidated
statements of profit or loss for the three and six months ended
June 30, 2013 and 2014, and (iii) reconciliations of Cost of sales,
excluding depreciation and amortization to Cost applicable to sales
for each of our mining units. The amounts set forth in Cost
applicable to sales and Cost applicable to sales per unit sold for
each mine and mineral indicated in the tables below can be
reconciled to the amounts set forth on our consolidated statements
of profit or loss for the three and six months ended June 30, 2013
and 2014 by reference to the reconciliations of Cost of sales,
excluding depreciation and amortization (by mine and mineral),
Selling Expenses (by mine and metal) expenses and Exploration in
units in operations (by mine and mineral) to consolidated Cost of
sales, excluding depreciation and amortization, consolidated
Selling Expenses and consolidated Exploration in units in
operations expenses, respectively, set forth below.
Set forth below is a reconciliation of
consolidated Cost of sales, excluding depreciation and
amortization, to consolidated Cost applicable to sales:
For the 3 months ended Dec 31 For the 12 months
ended Dec 31 2014 2013 2014 2013
(in thousands of US$) Consolidated Cost of sales excluding
depreciation and amortization 164,177 152,511 614,539 627,285
Add: Consolidated Exploration in units in operation 21,273
20,433 97,852 101,913 Consolidated Commercial deductions 54,862
33,732 184,483 137,811 Consolidated Selling expenses 3,483 3,278
16,605 14,842
Consolidated Cost applicable to sales
243,795 209,954 913,479 881,852
Set forth below is a reconciliation of Cost of sales, excluding
depreciation and amortization (by mine and mineral) to consolidated
Cost of sales:
For the 3 months ended Dec 31
For the 12 months ended Dec 31 2014 2013
2014 2013
Cost of sales by
mine and mineral
(in thousands of US$) Julcani, Gold 8 23 3 167 Julcani,
Silver 4,687 4,979 23,114 15,565 Julcani, Lead 384 331 1,891 1,150
Julcani, Copper 47 91 190 316 Mallay, Silver 1,894 2,202 8,135
11,336 Mallay, Lead 1,538 1,288 5,959 6,237 Mallay, Zinc 1,988
1,307 7,497 6,468 Breapampa, Gold 8,156 9,201 35,389 46,541
Breapampa, Silver 734 615 2,459 2,944 Orcopampa, Gold 25,316 26,706
105,828 121,665 Orcopampa, Silver 691 998 3,021 4,617 Uchucchacua,
Silver 31,675 18,765 130,688 100,290 Uchucchacua, Lead 2,115 1,174
8,028 6,805 Uchucchacua, Zinc 1,495 1,402 5,557 5,527 La Zanja,
Gold 27,504 21,666 80,495 84,213 La Zanja, Silver 1,132 1,107 3,460
3,927 El Brocal, Gold 986 569 3,491 2,745 El Brocal, Silver 3,904
4,275 12,331 13,980 El Brocal, Lead 1,178 1,523 2,051 7,581 El
Brocal, Zinc 5,701 2,547 6,478 16,030 El Brocal, Copper 25,539
22,267 96,934 78,503 Non Mining Units 17,505 29,475 71,540 90,679
Consolidated Cost of sales, excluding depreciation and
amortization 164,177 152,511 614,539
627,285 Set forth below is a reconciliation of
Exploration expenses in units in operation (by mine and mineral) to
consolidated Exploration expenses in mining units:
For the 3 months ended Dec 31 For the 12 months ended Dec
31 2014 2013 2014 2013
Exploration
expenses in units in operation by mine and mineral
(in thousands of US$) Julcani, Gold 4 10 2 67 Julcani,
Silver 2,253 2,100 10,072 6,269 Julcani, Lead 184 140 824 463
Julcani, Copper 23 38 83 127 Mallay, Silver 791 867 2,942 4,325
Mallay, Lead 643 507 2,155 2,380 Mallay, Zinc 831 515 2,711 2,468
Breapampa, Gold 65 188 463 2,747 Breapampa, Silver 6 13 32 174
Orcopampa, Gold 9,935 10,573 50,378 54,748 Orcopampa, Silver 271
395 1,438 2,077 Uchucchacua, Silver 5,614 4,449 24,125 22,133
Uchucchacua, Lead 375 278 1,482 1,502 Uchucchacua, Zinc 265 332
1,026 1,220 La Zanja, Gold 13 25 115 1,159 La Zanja, Silver 1 1 5
54 El Brocal, Gold 0 0 0 0 El Brocal, Silver 0 0 0 0 El Brocal,
Lead 0 0 0 0 El Brocal, Zinc 0 0 0 0 El Brocal, Copper 0 0 0 0 Non
Mining Units 0 0 0 0
Consolidated Exploration expenses in units
in operation 21,273 20,433 97,852
101,913 Set forth below is a reconciliation of
Commercial Deductions in units in operation (by mine and mineral)
to consolidated Commercial deductions:
For the 3
months ended Dec 31 For the 12 months ended Dec 31
2014 2013 2014 2013
Commercial
Deductions in units in operation by mine and mineral
(in thousands of US$) Julcani, Gold 2 9 2 62 Julcani, Silver
1,295 1,996 6,148 5,782 Julcani, Lead 106 133 502 427 Julcani,
Copper 12 12 53 117 Mallay, Silver 832 1,040 3,687 4,048 Mallay,
Lead 654 609 2,620 2,227 Mallay, Zinc 1,295 617 5,153 2,310
Breapampa, Gold 23 18 99 104 Breapampa, Silver 0 0 0 0 Orcopampa,
Gold 87 80 288 325 Orcopampa, Silver 1 0 1 0 Uchucchacua, Silver
9,530 5,609 35,786 35,240 Uchucchacua, Lead 632 383 2,248 2,559
Uchucchacua, Zinc 1,012 458 3,850 2,078 La Zanja, Gold 38 29 240
172 La Zanja, Silver 0 0 4 0 El Brocal, Gold 1,203 415 3,777 1,903
El Brocal, Silver 3,587 3,118 12,345 9,689 El Brocal, Lead 642
1,110 1,317 5,254 El Brocal, Zinc 3,320 1,857 4,105 11,110 El
Brocal, Copper 30,590 16,239 102,258 54,406 Non Mining Units 0 0 0
0
Consolidated Commercial deductions in units in operation
54,862 33,732 184,483 137,811
Set forth below is a reconciliation of Selling expenses (by mine
and mineral) to consolidated Selling expenses:
For
the 3 months ended Dec 31 For the 12 months ended Dec 31
2014 2013 2014 2013
Selling expenses
by mine and mineral
(in thousands of US$) Julcani, Gold 0 1 0 7 Julcani, Silver
265 163 979 684 Julcani, Lead 22 11 80 51 Julcani, Copper 3 3 8 14
Mallay, Silver 141 136 661 671 Mallay, Lead 115 80 484 369 Mallay,
Zinc 148 81 609 383 Breapampa, Gold 62 0 367 0 Breapampa, Silver 6
0 26 0 Orcopampa, Gold 223 3 929 3 Orcopampa, Silver 6 0 27 0
Uchucchacua, Silver 863 563 3,094 3,000 Uchucchacua, Lead 58 35 190
204 Uchucchacua, Zinc 41 42 132 165 La Zanja, Gold 401 157 1,382
505 La Zanja, Silver 17 8 59 24 El Brocal, Gold 28 36 204 202 El
Brocal, Silver 113 274 722 1,031 El Brocal, Lead 34 97 120 559 El
Brocal, Zinc 165 163 379 1,182 El Brocal, Copper 737 1,425 5,677
5,789 Non Mining Units 36 0 475 0
Consolidated Selling
expenses 3,483 3,278 16,605 14,842
JULCANI
JULCANI 4Q 2014 4Q 2013 FY 2014
FY 2013
GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL Cost of Sales (without D&A)
(US$000) 8 4,687 384 - 47 5,125
23 4,979 331 - 91 5,424 Cost of
Sales (without D&A) (US$000) 3 23,114 1,891 - 190 25,199
167 15,565 1,150 - 316 17,198
Add: Add:
Exploration Expenses (US$000) 4 2,253 184 - 23 2,463 10 2,100 140 -
38 2,288 Exploration Expenses (US$000) 2 10,072 824 - 83 10,981 67
6,269 463 - 127 6,927 Commercial Deductions (US$000) 2 1,295 106 -
12 1,416 9 1,996 133 - 12 2,151 Commercial Deductions (US$000) 2
6,148 502 - 53 6,706 62 5,782 427 - 117 6,388 Selling Expenses
(US$000) 0 265 22 - 3 290 1 163 11 - 3 178 Selling Expenses
(US$000) 0 979 80 - 8 1,067 7 684 51 - 14 755
Cost Applicable to
Sales (US$000) 14 8,499 696 -
85 9,295 43 9,238 615 -
145 10,040 Cost Applicable to Sales (US$000)
7 40,314 3,297 - 335
43,953 304 28,299 2,091 -
575 31,269 Divide: Divide:
Volume Sold
15 602,165 398 - 15 Not
Applicable 66 878,459 605 - 49
Not Applicable Volume Sold 12 2,851,318
2,057 - 64 Not Applicable 378
2,227,960 1,713 - 140 No Aplicable
CAS 972 14.11
1,748 - 5,660 Not
Applicable 645 10.52
1,016 - 2,940 Not
Applicable CAS 603 14.14
1,603 - 5,195
No Applicable 804 12.70
1,220 - 4,103 No
Applicable MALLAY MALLAY 4Q
2014 4Q 2013 FY 2014 FY 2013
GOLD (OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL Cost
of Sales (without D&A) (US$000) - 1,894 1,538 1,988 - 5,419 -
2,202 1,288 1,307 - 4,797 Cost of Sales (without D&A) (US$000)
- 8,135 5,959 7,497 - 21,590 - 11,336 6,237 6,468 - 24,041
Add: Add: Exploration Expenses (US$000) - 791 643 831
- 2,265 - 867 507 515 - 1,889 Exploration Expenses (US$000) - 2,942
2,155 2,711 - 7,807 - 4,325 2,380 2,468 - 9,173 Commercial
Deductions (US$000) - 832 654 1,295 - 2,781 - 1,040 609 617 - 2,266
Commercial Deductions (US$000) - 3,687 2,620 5,153 - 11,460 - 4,048
2,227 2,310 - 8,584 Selling Expenses (US$000) - 141 115 148 - 404 -
136 80 81 - 296 Selling Expenses (US$000) - 661 484 609 - 1,754 -
671 369 383 - 1,423
Cost Applicable to Sales (US$000)
- 3,658 2,950 4,262 -
10,870 - 4,246 2,484 2,519
- 9,249 Cost Applicable to Sales (US$000)
- 15,425 11,217 15,970 -
42,612 - 20,380 11,213 11,628
- 43,221 Divide: Divide: Volume Sold
- 285,846 1,797 1,992 -
Not Applicable - 279,430 1,615 1,830
- Not Applicable Volume Sold -
1,121,202 7,253 8,609 - Not Applicable
- 1,146,442 6,570 7,614 -
Not Applicable
CAS - 12.80
1,641 2,139 -
Not Applicable - 15.20
1,537 1,377 - Not
Applicable CAS - 13.76
1,547 1,855 -
No Applicable - 17.78
1,707 1,527 - No
Applicable BREAPAMPA BREAPAMPA
4Q 2014 4Q 2013 FY 2014 FY 2013
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL Cost
of Sales (without D&A) (US$000) 8,156 734 - - - 8,890 9,201 615
- - - 9,815 Cost of Sales (without D&A) (US$000) 35,389 2,459 -
- - 37,847 46,541 2,944 - - - 49,485
Add: Add:
Exploration Expenses (US$000) 65 6 - - - 71 188 13 - - - 201
Exploration Expenses (US$000) 463 32 - - - 495 2,747 174 - - -
2,921 Commercial Deductions (US$000) 23 - - - - 23 18 - - - - 18
Commercial Deductions (US$000) 99 - - - - 99 104 - - - - 104
Selling Expenses (US$000) 62 6 - - - 67 - - - - - - Selling
Expenses (US$000) 367 26 - - - 393 - - - - - -
Cost Applicable
to Sales (US$000) 8,305 745 - -
- 9,051 9,408 627 - -
- 10,035 Cost Applicable to Sales (US$000)
36,318 2,516 - - - 38,834
49,392 3,117 - - - 52,509
Divide: Divide: Volume Sold 14,456
98,441 - - - Not Applicable
20,526 88,561 - - - Not
Applicable Volume Sold 80,358 383,733 -
- - Not Applicable 80,178 311,634
- - - Not Applicable
CAS
574 7.57 - -
- Not Applicable 458
7.08 - - -
Not Applicable CAS 452
6.56 - - -
No Applicable 616 10.00
- - - No
Applicable ORCOPAMPA ORCOPAMPA
4Q 2014 4Q 2013 FY 2014 FY 2013
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL Cost
of Sales (without D&A) (US$000) 25,316 691 - - - 26,007 26,706
998 - - - 27,704 Cost of Sales (without D&A) (US$000) 105,828
3,021 - - - 108,849 121,665 4,617 - - - 126,282
Add:
Add: Exploration Expenses (US$000) 9,935 271 - - - 10,206
10,573 395 - - - 10,969 Exploration Expenses (US$000) 50,378 1,438
- - - 51,816 54,748 2,077 - - - 56,825
Commercial Deductions (US$000)
87 1 - - - 88 80 - - - - 80 Commercial Deductions (US$000) 288 1 -
- - 289 325 0 - - - 325 Selling Expenses (US$000) 223 6 - - - 229 3
0 - - - 3 Selling Expenses (US$000) 929 27 - - - 955 3 0 - - - 3
Cost Applicable to Sales (US$000) 35,560 970
- - - 36,530 37,362 1,394
- - - 38,756 Cost Applicable to
Sales (US$000) 157,422 4,487 - -
- 161,909 176,741 6,694 -
- - 183,436 Divide: Divide:
Volume Sold 52,195 108,290 - - -
Not Applicable 46,472 112,149 -
- - Not Applicable Volume Sold 204,862
401,782 - - - Not Applicable
221,322 516,033 - - - Not
Applicable
CAS 681 8.95
- - - Not
Applicable 804 12.43
- - - Not
Applicable CAS 768 11.17
- - - No
Applicable 799 12.97
- - - No
Applicable UCHUCCHACUA UCHUCCHACUA
4Q 2014 4Q 2013 FY 2014 FY 2013
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL Cost
of Sales (without D&A) (US$000) - 31,675 2,115 1,495 - 35,285 -
18,765 1,174 1,402 - 21,341 Cost of Sales (without D&A)
(US$000) - 130,688 8,028 5,557 - 144,273 - 100,290 6,805 5,527 -
112,622
Add: Add: Exploration Expenses (US$000) -
5,614 375 265 - 6,254 - 4,449 278 332 - 5,060 Exploration Expenses
(US$000) - 24,125 1,482 1,026 - 26,633 - 22,133 1,502 1,220 -
24,854 Commercial Deductions (US$000) - 9,530 632 1,012 - 11,174 -
5,609 383 458 - 6,449 Commercial Deductions (US$000) - 35,786 2,248
3,850 - 41,884 - 35,240 2,559 2,078 - 39,877 Selling Expenses
(US$000) - 863 58 41 - 962 - 563 35 42 - 640 Selling Expenses
(US$000) - 3,094 190 132 - 3,416 - 3,000 204 165 - 3,369
Cost
Applicable to Sales (US$000) - 47,683
3,180 2,812 - 53,675 -
29,386 1,870 2,234 - 33,491
Cost Applicable to Sales (US$000) - 193,694
11,947 10,565 - 216,207 -
160,663 11,069 8,990 - 180,722
Divide: Divide: Volume Sold - 3,206,509
1,665 1,013 - Not Applicable -
1,874,428 1,135 1,502 - Not
Applicable Volume Sold - 11,940,167 6,530
4,288 - Not Applicable -
9,748,206 6,977 6,340 - Not Applicable
CAS - 14.87 1,909
2,777 - No Applicable
- 15.68 1,648
1,488 - No Applicable CAS
- 16.22 1,830
2,464 - No Applicable
- 16.48 1,586
1,418 - No Applicable
LA ZANJA LA ZANJA 4Q 2014 4Q 2013 FY
2014 FY 2013 GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL Cost of Sales (without
D&A) (US$000) 27,504 1,132 - - - 28,636 21,666 1,107 - - -
22,773 Cost of Sales (without D&A) (US$000) 80,495 3,460 - - -
83,955 84,213 3,927 - - - 88,140
Add: Add:
Exploration Expenses (US$000) 13 1 - - - 14 25 1 - - - 26
Exploration Expenses (US$000) 115 5 - - - 120 1,159 54 - - - 1,213
Commercial Deductions (US$000) 38 -0 - - - 38 29 - - - - 29
Commercial Deductions (US$000) 240 4 - - - 244 172 - - - - 172
Selling Expenses (US$000) 401 17 - - - 418 157 8 - - - 165 Selling
Expenses (US$000) 1,382 59 - - - 1,441 505 24 - - - 528
Cost
Applicable to Sales (US$000) 27,957 1,149
- - - 29,106 21,877 1,116
- - - 22,994 Cost Applicable to
Sales (US$000) 82,231 3,528 - -
- 85,760 86,049 4,004 - -
- 90,054 Divide: Divide: Volume Sold
33,098 101,988 - - - Not
Applicable 32,738 108,049 - - -
Not Applicable Volume Sold 143,151 418,565
- - - Not Applicable 132,992
381,091 - - - Not Applicable
CAS 845 11.27 -
- - Not Applicable
668 10.33 - -
- Not Applicable CAS
574 8.43 - -
- No Applicable 647
10.51 - - -
Not Applicable
BROCAL BROCAL
4Q 2014 4Q 2013 FY 2014 FY 2013
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL Cost
of Sales (without D&A) (US$000) 986 3,904 1,178 5,701 25,539
37,309 569 4,275 1,523 2,547 22,267 31,180 Cost of Sales (without
D&A) (US$000) 3,491 12,331 2,051 6,478 96,934 121,285 2,745
13,980 7,581 16,030 78,503 118,838
Add: Add:
Exploration Expenses (US$000) - - - - - - - - - - - - Exploration
Expenses (US$000) - - - - - - - - - - - - Commercial Deductions
(US$000) 1,203 3,587 642 3,320 30,590 39,343 415 3,118 1,110 1,857
16,239 22,739 Commercial Deductions (US$000) 3,777 12,345 1,317
4,105 102,258 123,801 1,903 9,689 5,254 11,110 54,406 82,361
Selling Expenses (US$000) 28 113 34 165 737 1,077 36 274 97 163
1,425 1,996 Selling Expenses (US$000) 204 722 120 379 5,677 7,103
202 1,031 559 1,182 5,789 8,763
Cost Applicable to Sales
(US$000) 2,218 7,604 1,855 9,186
56,866 77,729 1,020 7,667 2,730
4,567 39,931 55,915 Cost Applicable to
Sales (US$000) 7,472 25,398 3,488
10,962 204,869 252,189 4,850
24,699 13,393 28,322 138,698
209,962 Divide: Divide: Volume Sold
2,278 672,417 1,609 6,955 10,436
Not Applicable 1,202 539,230 1,932
3,620 8,284 Not Applicable Volume Sold 7,874
1,928,243 2,759 8,007 40,198 Not
Applicable 4,619 1,460,681 8,392 20,011
25,266 Not Applicable
CAS 973
11.31 1,152 1,321
5,449 Not Applicable 849
14.22 1,413 1,262
4,820 Not Applicable CAS
949 13.17 1,264
1,369 5,096 No Applicable
1,050 16.91 1,596
1,415 5,490 Not Applicable
NON MINING COMPANIES NON MINING COMPANIES
4Q 2014 4Q 2013 FY 2014 FY 2013
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL Cost
of Sales (without D&A) (US$000) - - - - - 17,505 - - - - -
29,475 Cost of Sales (without D&A) (US$000) - - - - - 71,540 -
- - - - 90,679
Add: - -
Add: - - Selling Expenses
(US$000) - - - - - 36
- - - - - 0 Selling
Expenses (US$000) - - - - -
475 - - - - - -
Total (US$000) - - - - -
17,542 - - - - - 29,475
Total (US$000) - - - - -
72,015 - - - - - 90,679
BUENAVENTURA CONSOLIDATED BUENAVENTURA
CONSOLIDATED 4Q 2014 4Q 2013 FY 2014 FY
2013 GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL Cost of Sales (without D&A) (US$000) 61,970 44,717
5,215 9,184 25,586 164,177 58,165 32,941 4,316 5,256 22,358 152,511
Cost of Sales (without D&A) (US$000) 225,206 183,208 17,929
19,532 97,124 614,539 255,332 152,658 21,773 28,025 78,819 627,285
Add: Add: Exploration Expenses (US$000) 10,017 8,936
1,202 1,096 23 21,273 10,796 7,826 925 847 38 20,433 Exploration
Expenses (US$000) 50,957 38,614 4,461 3,737 83 97,852 58,721 35,032
4,345 3,688 127 101,913 Commercial Deductions (US$000) 1,353 15,245
2,035 5,627 30,602 54,862 551 11,763 2,235 2,932 16,251 33,732
Commercial Deductions (US$000) 4,405 57,972 6,686 13,109 102,312
184,483 2,566 54,757 10,467 15,497 54,524 137,811 Selling Expenses
(US$000) 714 1,411 228 354 740 3,483 197 1,144 223 286 1,428 3,278
Selling Expenses (US$000) 2,883 5,568 874 1,120 5,685 16,605 718
5,409 1,182 1,730 5,803 14,842
Cost Applicable to Sales
(US$000) 74,054 70,308 8,680 16,260
56,951 243,795 69,709 53,674
7,699 9,321 40,076 209,954 Cost
Applicable to Sales (US$000) 283,450 285,362
29,950 37,498 205,203 913,479
317,337 247,857 37,767 48,940
139,272 881,852 Divide: Divide: Volume
Sold 102,043 5,075,656 5,470 9,961
10,451 Not Applicable 101,004 3,880,307
5,287 6,952 8,333 Not Applicable Volume
Sold 436,257 19,045,010 18,599 20,904
40,263 Not Applicable 439,489
15,792,046 23,652 33,965 25,406 Not
Applicable
CAS 726 13.85
1,587 1,632 5,449 Not
Applicable 690 13.83
1,456 1,341 4,809 Not
Applicable CAS 650 14.98
1,610 1,794 5,097
Not Applicable 722 15.70
1,597 1,441 5,482 Not
Applicable
COIMOLACHE COIMOLACHE 4Q
2014 4Q 2013 FY 2014 FY 2013
GOLD (OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL Cost
of Sales (without D&A) (US$000) 14,903 1,167 - - - 16,070
11,868 746 - - - 12,613 Cost of Sales (without D&A) (US$000)
55,041 4,237 - - - 59,278 60,112 4,953 - - - 65,064
Add:
Add: Exploration Expenses (US$000) 3,510 275 - - - 3,785
1,079 68 - - - 1,147 Exploration Expenses (US$000) 8,178 629 - - -
8,808 15,485 1,276 - - - 16,760 Commercial Deductions (US$000) 202
19 - - - 220 205 15 - - - 220 Commercial Deductions (US$000) 453 34
- - - 487 873 87 - - - 960 Selling Expenses (US$000) 278 22 - - -
300 58 4 - - - 61 Selling Expenses (US$000) 1,001 77 - - - 1,078
482 40 - - - 522
Cost Applicable to Sales (US$000)
18,893 1,482 - - - 20,375
13,209 831 - - - 14,041
Cost Applicable to Sales (US$000) 64,673 4,977
- - - 69,650 76,951 6,355
- - - 83,306 Divide:
Divide: Volume Sold 39,776 233,169 -
- - Not Applicable 34,565
134,379 - - - Not Applicable Volume
Sold 142,084 741,525 - - -
Not Applicable 141,633 691,887 -
- - Not Applicable
CAS 475
6.36 - - -
Not Applicable 382 6.19
- - - Not
Applicable CAS 455 6.71
- - - No
Applicable 543 9.18 -
- - Not Applicable
APPENDIX 6: ALL-IN SUSTAINING COST FOR FY14
Buenaventura1 La Zanja
Tantahuatay Attributable Production2
FY14 FY14
FY14
FY14
Au Ounces Sold BVN 426,919 Au Ounces
bought from La Zanja -141,688 Au Ounces Sold Net 285,231 142,827
142,084 417,984
FY14
FY14
FY14
FY14
Income Statement & Cash Flow US$ 000'
US$/Oz Au US$ 000' US$/Oz Au
US$ 000'
US$/Oz Au
US$ 000' US$/Oz Au Cost of Sales3
352,892 1,237 84,381 591 59,228 417 421,412 1,008 Exploration in
Operating Units 97,732 343 19,809 139 8,808 62 111,774 267
Royalties 27,885 98 555 4 0 0 28,180 67 Comercial Deductions4
60,607 212 3,468 24 487 3 62,643 150 Selling Expenses 7,591 27
1,441 10 1,078 8 8,788 21 Administrative Expenses5 49,740 174 5,920
41 2,073 15 53,712 129 Other Expenses 0 0 11,874 83 6,497 46 8,905
21 Other Incomes 0 0 -13,317 -93 -9,016 -63 -10,681 -26
Administrative charges 0 0 4,277 30 583 4 2,503 6 Sustaining Capex6
25,448 89 20,452 143 35,360 249 50,478 121 By-product Credit
-375,654 -1,317 -7,881 -55 -13,765 -97 -385,354 -922
All-in Sustaining Cost 246,242 863
130,979 917 91,333 643 352,360
843
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. 6. Sustaining Capex + Growth Capex equals
Adquisitions of mining concessions, development costs, property,
plant and equipment.
APPENDIX 7:
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Financial Position
As of December 31, 2014 and December 31, 2013 2,014
2,013 Assets US$(000) US$(000)
Current assets Cash and cash equivalents 78,512 51,276 Trade
and other accounts receivable, net 281,604 261,003 Income tax
credit 53,746 37,370 Prepaid expenses 16,954 14,597 Hedge
derivative financial instruments 3,688 - Embedded derivatives for
concentrate sales, net - 1,857 Inventory, net 150,284 175,719
Total current assets 584,788 541,822 Assets
classified as held for sale 18,683
- 603,471
541,822 Non-current assets Trade and other
accounts receivable, net 26,651 28,079 Long-term inventory 34,088
23,366 Investment in associates 2,224,381 2,350,302 Mining
concessions, development costs, property, plant and equipment, net
1,715,452 1,515,460 Investment properties 11,200 - Deferred income
tax asset 47,675 83,525 Other assets, net 9,356 7,133
Total
non-current assets 4,068,803 4,007,865.00
Total assets 4,672,274 4,549,687.00
Liabilities and shareholders’ equity
Current liabilities Overdraft and bank loans 40,000 - Trade
and other accounts payable 254,000 285,532 Provisions 67,895 69,800
Income tax payable 3,556 2,140 Hedge derivative financial
instruments - 1,093 Embedded derivatives for concentrate sales, net
9,072 - Financial obligations 69,950 11,370
Total current
liabilities 444,473 369,935 Liabilities
directly associated with assets classified as held for sale 28,890
- 473,363 369,935 Non-current
liabilities Financial liability at fair value through profit or
loss 23,026 - Trade and other accounts payable 15,240 12,229
Provisions 63,571 106,376 Financial obligations 313,355 223,027
Deferred income tax liability 21,594 -
Total non-current
liabilities 436,786 341,632
Total liabilities 910,149 711,567
Shareholders’ equity Issued capital, net of treasury shares
for US$(000)62,665 750,497 750,497 Investment shares, net of
treasury shares for US$(000)765 1,396 1,396 Additional paid-in
capital 219,055 219,055 Legal reserve 162,710 162,663 Other
reserves 269 269 Retained earnings 2,328,423 2,413,130 Other equity
reserves 1,755 104
3,464,105 3,547,114
Non-controlling interest 298,020 291,006
Total shareholders’
equity 3,762,125 3,838,120 Total
liabilities and shareholders’ equity 4,672,274
4,549,687 Compañía de Minas
Buenaventura S.A.A. and Subsidiaries Consolidated Statement
of Income For the three and twelve month periods ended
December 31, 2014 and 2013 For the three month period
For the twelve month period ended December, 31
ended December, 31 2,014 2,013 2,014
2,013 US$(000) US$(000) US$(000)
US$(000) Operating income Net sales 253,669 287,039
1,128,305 1,215,421 Royalty income 11,911 7,152
36,867 44,185
Total operating income 265,580
294,191 1,165,172 1,259,606
Operating costs Cost of
sales, without considering depreciation and amortization (164,177 )
(152,511 ) (614,539 ) (627,285 ) Exploration in operating units
(21,273 ) (20,433 ) (97,852 ) (101,913 ) Depreciation and
amortization (57,684 ) (41,445 ) (208,698 ) (159,140 ) Mining
royalties (6,630 ) (6,704 ) (28,440 ) (30,402 )
Total operating
costs (249,764 ) (221,093 ) (949,529 ) (918,740 )
Gross profit 15,816 73,098
215,643 340,866
Operating expenses
Administrative expenses (24,833 ) (19,154 ) (101,102 ) (75,118 )
Exploration in non-operating areas (17,833 ) (9,444 ) (50,007 )
(32,805 ) Selling expenses (3,483 ) (3,278 ) (16,605 ) (14,842 )
Excess workers' participation (704 ) (704 ) Other, net 12,001
(7,513 ) 13,667 (2,154 )
Total operating
expenses (34,148 ) (40,093 ) (154,047 ) (125,623 )
Operating profit (18,332 ) 33,005 61,596
215,243
Other income, net Share in the results
of associates under equity method (113,842 ) (287,985 ) (74,600 )
(114,145 ) Financial income 4,124 4,270 8,408 6,621 Financial
expenses (4,255 ) (665 ) (11,318 ) (9,896 ) Net loss from currency
exchange difference (3,378 ) (341 ) (8,452 ) (7,192 ) Adquiscion
gain generated by subsidiary - - 59,852 -
Total other income, net (117,351 ) (284,721 ) (26,110
) (124,612 )
Profit before income taxes and
non-controlling interest (135,683 ) (251,716 ) 35,486 90,631
Income taxes (23,928 ) (13,410 ) (66,012 ) (86,482 )
Net profit (159,611 ) (265,126 )
(30,526 ) 4,149
Discontinued operations Loss
from discontinued operations (31,114 ) (83,885 ) (31,114 ) (83,885
)
Net Income (190,725 ) (349,011 ) (61,640 ) (79,736 )
Attributable to: Owners of the parent (187,661 ) (355,959 )
(76,065 ) (107,257 ) Non-controlling interest (3,064 ) 6,948
14,425 27,521 (190,725 ) (349,011 ) (61,640 ) (79,736
)
Basic and diluted earnings per share attributable
to owners of the parent, stated in U.S. dollars (0.74 )
(1.40 ) (0.30 ) (0.42 )
Weighted average number of shares
outstanding (common and investment), in units
254,186,867 254,186,867 254,186,867
254,186,867
Compañía de Minas
Buenaventura S.A.A. and Subsidiaries Consolidated Statement
of Cash Flows For the three and twelve month periods ended
December 31, 2014 and 2013 For the three month period
For the twelve month period ended December, 31
ended December, 31 2,014 2,013 2,014
2,013 US$(000) US$(000) US$(000)
US$(000) Operating activities Proceeds from sales
277,368 311,879 1,133,759 1,351,359 Value Added Tax (VAT) recovered
- 7,815 39,685 66,921 Royalties received 14,719 10,738 36,867
50,562 Dividends received 6,015 2,027 12,941 9,803 Interest
received 4,027 4,102 8,333 8,235 Payments to suppliers and
third-parties (113,411 ) (98,216 ) (633,146 ) (752,813 ) Payments
to employees (46,490 ) (46,522 ) (203,562 ) (216,799 ) Payment of
income tax (1,768 ) (47 ) (33,161 ) (66,427 ) Payment of royalties
(5,783 ) (2,632 ) (22,631 ) (30,623 ) Payment of interest (4,032 )
(2,936 ) (9,405 ) (11,494 )
Net cash and cash equivalents
provided by operating activities 130,645 186,208
329,680 408,724
Investing activities
Proceeds from settlement of financial assets at fair value through
profit or loss - 12,944 - 52,944 Proceeds from collections of loans
to associates - 4,043 15,553 24,537 Proceeds from sales of mining
concessions, property, plant and equipment 13,217 47 1,681 5,010
Proceeds from settlement of investment in shares - - - -
Acquisitions of mining concessions, development costs, property,
plant and equipment (42,920 ) (147,494 ) (284,903 ) (503,576 )
Acquisitions of investment properties - - - - Payment for purchase
of investments - - (80,373 ) - Associates loans granted - - - -
Contributions and investments in associates (2,092 ) (1,649 )
(2,912 ) (6,988 ) -
Net cash and cash equivalents used in
investing activities (31,795 ) (132,109 ) (350,954 ) (428,073 )
Financing activities Increase of bank loans (504 )
(21,126 ) 40,000 - Increase in financial obligations (118,321 )
176,975 68,237 236,975 Payment of financial obligations (2,433 )
(260,089 ) (42,205 ) (260,231 ) Dividends paid (5,845 ) (2,567 )
(8,642 ) (78,836 ) Dividends paid to non-controlling interest
(2,640 ) - (8,880 ) (13,533 ) Purchase of associates' shares -
- - (462 )
Net cash and cash
equivalents provided by (used in) financing activities (129,743
) (106,807 ) 48,510 (116,087 ) Net increase
(decrease) in cash and cash equivalents during the period (30,893 )
(52,708 ) 27,236 (135,436 ) Cash and cash equivalents at the
beginning of the period 109,405 103,984 51,276 186,712
Cash and cash equivalents at period-end
78,512 51,276 78,512 51,276
Compañia de Minas Buenaventura S.A.A.Lima:Carlos Galvez,
511-419-2540Chief Financial OfficerorDaniel Dominguez,
511-419-2591Director of Treasury and Investor
Relationsdaniel.dominguez@buenaventura.peorNew York:i-advize
Corporate CommunicationsMaria Barona / Rafael Borja,
212-406-3691/3693buenaventura@i-advize.com
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